KUALA LUMPUR – Those planning to buy electric vehicles (EV) have more benefits to look forward to under Budget 2023, including extended tax exemptions on EVs until 2027.
Prime Minister Datuk Seri Anwar Ibrahim’s maiden budget lists exceptions on excise duty and sales tax for locally assembled completely knocked-down (CKD) EVs until December 31, 2027.
Import duty on components for locally-assembled EVs will also be exempted until the same date, the touchpoints or summarised list of the budget’s items released by the Finance Ministry said.
Fully imported completely built-up (CBU) EVs, meanwhile, will enjoy exemptions on import duty and excise duty until December 31, 2025.
On the manufacturing side, EV charging equipment makers will enjoy full income tax exemption for 10 years, from the assessment year 2023 to 2032, as well as full exemption on investment tax allowance for five years.
To encourage wider EV usage, companies that rent out EVs will enjoy tax deductions if their maximum amount of rentals is no more than RM300,000.
Tenaga Nasional Bhd will also support the installation of 70 EV charging facilities, a project costing RM90 million.
Separately, Petronas-owned clean energy solutions company Gentari, is to install 500 EV charging points nationwide. – The Vibes, February 24, 2023
